Item withholding tax group of procurement category not inherited for prepayment invoice line

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Posted on by TerjeHals

I have setup a procurement category that I want to use for vendor prepayments, and this category has been setup with "Calculate withholding tax" = Yes and with a specific item withholding tax group (see below)

However, when using this item category to register a prepayment and when I create the prepayment invoice, the Item withholding tax group is NOT inherited from the procurement category setup (only the Item sales tax group is).

Does anyone know why item withholding tax group is not passed on to the prepayment invoice? Is this a bug, or is there something I am missing here?

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Dynamics 365 Finance

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Damodar Naidu 10 on at

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Hi TerjeHals,

Please check weather the vendor is enabled or not for calculating withholding tax.

Please mark if this is resolved your issue.

Regards,

Damodar Naidu.

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YD-01101305-0 83 on at

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Hi guys! How you added withholding tax to procurement categories? I dont have this in my.

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YD-01101305-0 83 on at

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@@TerjeHals can you check my question? I don't have withholding tax group in my procurement categories. What should be activated for that? @@Damodar Naidu maybe you can help?

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TerjeHals 60 on at

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@Damodar Naidu This parameter has been turned on for the vendor. The withholding tax group for the category is inherited from the PO header, which again inherted the parameter value from the vendor.

@YD-01101305-0 Have you turned on Global Withhholding tax under the "Withholding tax" tab in GL-parameters?

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YD-01101305-0 83 on at

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@@TerjeHals dont have parameters

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TerjeHals 60 on at

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@YD-01101305-0

Check in Feature Management. Global Withholding Tax should be activated

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TerjeHals 60 on at

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I noticed that you have a tab called Direct taxes which seems to be related to Indian localization. From what I can tell, this tab replaces the "Withholding tax" tab for any Indian companies in D365FO.

If I am correct in this: does this "TDS" approach use the same concept of Item Withholding tax groups?

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